1.

INTRODUCTION

1.1 Background of the research problem

1.1.1 Introduction to strategic management

To keep or improve competitive advantage, strategic management involves a process

of review, planning, and implementation. The interior, as well as the exterior

environment, are both taken into consideration throughout the evaluation process.

Designing business models, organisational direction, competitive strategies,

worldwide plans, acquisitions, and cooperative action are just a few of the numerous

activities that fall under the umbrella of planning. Leadership is needed for a variety

of tasks throughout the implementation phase, including creating the proper

organisational structure, creating a management culture, monitoring the strategy

processes, and managing the company through corporate governance.

The expansion of strategic management within a company is correlated with the

observable evidence of the strategic sectors in which the company is active.

Opportunities in the market, knowledge of the company, its potential, and confirmed

commitments. The organisation is capable of satisfying its external needs with

sufficient financial controls. The external needs of the firm and the possibilities that

are provided to it are likely to be significantly correlated as a result of strategic

management. According to a study conducted by Abraham in 2012, strategic

management is crucial for the success of multinational businesses since it promotes

steady and workable economic growth. Based on current studies, it will be determined

how important strategic leadership is for the expansion of global firms. In this sense,

the majority of recent study has concentrated on the significance of strategic

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 leadership in the development of global organisations. To strengthen the current

economic foundation and promote the growth of new underdeveloped businesses, the

economic market must be built fast. The study's findings can be applied by numerous

organisations seeking entry into the major international business parks.

1.1.2 Introduction to the global market

One of the most prominent trends in the area of commerce is the growing

internationalisation of commercial activity. In place of operating on a national level,

an increasing number of the businesses are now doing it on a global or regional scale.

As a result, new criteria are introduced to management decisions, necessitating a re-

evaluation of organisational policies and planning processes. This rule also applies to

marketing. The question that international marketing managers are asking is how they

should handle the expanded reach of their operations and whether they can translate

domestic marketing tactics for use in foreign markets. The altered E.P.R.G. schema

might offer some recommendations for these and other problems. This framework

identifies four different types of attitudes or orientations towards internationalisation,

such as ethnocentrism (home country orientation), polycentrism (parent country

orientation), regiocentrism (regional orientation), and geocentrism (global

orientation), that are related to different phases in the development of international

operations. These attitudes, which are believed to represent the company's goals and

guiding ideals with regard to global business, will have an impact on the management

strategies and planning methods applied for this type of business.

The top management is in the ethnocentric phase when they think that domestic

techniques and employees are better than those from other nations and are the most

successful in international marketplaces. A polycentric mindset develops as the

organisation starts to understand the significance of intrinsic variations in other

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 markets. The prevailing belief at this point is that local workers and methods are best

adapted to handle regional market conditions. This frequently results in issues with

control and coordination, leading one to adopt a regiocentric position. Regiocentrism

identifies regional similarities and influences the creation of regional plans. At its

most extreme, this approach may result in geocentrism, which is marked by the belief

that "the best man for the job" should be chosen regardless of nationality. Production,

finance, and personnel are the three functional domains for which this schema has

implications. These implications have already been looked at. In this post, we will

look at how to plan and create international marketing strategies using the E.P.R.G.

framework as a framework. It is particularly interested in (I) studying the

consequences of each orientation in terms of marketing tactics and (II) determining

the circumstances in which international marketers are most likely to adopt these

orientations and related methods.

1.1.3 Introduction to Royal Enfield

The world's oldest motorbike manufacturer is Royal Enfield. Since 1949, India has

been the home of the more than 100-year-old brand. Eicher Motors Limited acquired

the manufacturer Enfield India in 1994. Eicher Motors has owned the brand ever

since. As a result, it is now a brand in India. At one point in late 1990, the kingdom of

Royal Enfield, formerly regarded as the monarch of the globe, was on the verge of

being taken away. The oldest motorcycle manufacturer, Royal Enfield, is still

producing bikes despite all odds. In 2000, the storied bike company was in danger of

going out of business due to a loss of Rs. 20 crores. The way the brand's fortunes

changed is a prime example of brilliant product planning, process management, and

brand management, all of which were paired with excellent marketing methods.

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1.2 Statement of the research problem

The followings are the few statements of strategic management practices of Royal

Enfield in the global market:

i. The strategic management practices adopted by Royal Enfield for achieving its

vision.

ii. High contrast between the performance of Royal Enfield in the Indian market and

the global market.

iii. Examine the effects of technology on brand value within organisations and contrast

those findings with the worldwide market.

iv. Diversification and mitigation of negative impacts from the internal and external

environment.

1.1.5 Statement of Research Objectives

The followings are the objectives of the strategic management practices of Royal Enfield

in the global market:

i. To study the strategic management practices in Royal Enfield.

ii. To study the performance of Royal Enfield in the Indian market and global market.

iii. To analyse the technological impact on companies’ brand value and compare that

with the global market.

iv. To mitigate the negative impact of environmental analysis and provide the

suggestive measures for the strategies of Royal Enfield.

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 1.1.6 Statement on Significance of Research

The followings are the few significances of strategic management practices of Royal

Enfield in the global market:

i. The strategic management techniques Royal Enfield used to carry out its vision.

ii. There is a significant difference between Royal Enfield's performance on the Indian

market and the whole market.

iii. The effect of technology on brand value of enterprises and compare that to the global

market.

iv. Diversification and the reduction of harmful effects from both the internal and

external environment.

2. ORGANISATION’S BACKGROUND

2.1 Company’s Profile and History

In England, Enfield Manufacturing Company Limited was founded in the year 1890. The

company began producing its product under the brand name Royal Enfield. The brand

quickly opted to concentrate on other automobiles. The "Royal Enfield Quadricycle" was

the first quadricycle they produced, starting in 1899. The product's market potential was

modest despite its unique concept. The 239-CC engine-equipped motorbike was the first

made by the business, and it was unveiled in 1901. When a compact motorbike with a 2,

14 HP, V-twin Moto SOHC engine with Swiss roots was shown in 1909, the motorcycle

industry was pleasantly impressed. The next model, which appeared in 1911, included a 2,

34 HP engine and the well-known Enfield 2-speed gear. The iconic JAP 6 HP, 770-CC, V

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 twin and sidecar set, which helped establish Enfield as a household name, made its debut

in 1912 and is still in use today.

The first 3-HP bikes with an Enfield engine were introduced to the world in 1914. They

had the company's signature black enamelled parts and green tanks with gold accents. In

1949, Enfield started selling bikes in the Indian market as a strategic move for its

worldwide expansion and to satisfy the demands of the Indian Army. The Indian army was

considered the greatest choice for employing these motorcycles for border patrol since the

Indian government ordered 800, 350-CC Royal Enfield in 1955. The business quickly

began producing the 500-CC Bullet for Indian markets after getting the go-ahead from

clients in that country. The company merged with Madras Motors in India to establish

"Enfield India" in 1955 in order to build the 350-CC Royal Enfield, Bullet motorbike in

Madras (now known as Chennai). The tooling was purchased by Enfield India so they

could manufacture components.

All components were produced in India by 1962. The Indian Enfield employs the 1960

engine with the metric bearing sizes, Royal Enfield continues to produce a bike that is

virtually identical in 350-CC and 500-CC versions today, along with a number of other

models for other market niches. Royal Enfield began working with the Indian automaker

Eicher Group in 1990, and the two organisations eventually amalgamated in 1994. The

Eicher Group makes and markets tractors, commercial vehicles, and automotive

equipment in addition to bikes. Due to financial issues in the 1990s, Royal Enfield stopped

making motorcycles at their facility in Jaipur in 2002.

2.2 Company’s Mission, vision, and purpose statement

The goal of Royal Enfield is to inspire ever-increasing numbers of individuals to

experience the joy of riding and continue their quest for discovery.

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 By creating a new class of bikes that will represent a comeback to pleasurable and the

evocative mid-size motorcycling (defined as owning, riding, maintaining, and residing

with a motorbike), Royal Enfield hopes to challenge the current quo. Both traditional,

straightforward, engaging, and approachable motorbikes for the city as well as superb

touring, adventure, and sports bikes are intended for these models. Each of these

motorcycles is suitable for usage in a variety of situations and in almost all-weather

conditions because they are not in any way extreme. Additionally, it indicates that both

inexperienced and seasoned riders will get enjoyment from motorbikes because they are

designed to provide maximum pleasure at typical road speeds.

The purpose of Royal Enfield motorcycles is to reintroduce qualities that many people

long for in today's cold environment: authenticity, tactility, craftsmanship, physical

experience, and aggressive pursuit. The bikes we build will have a classic aesthetic and

appeal, but they'll also be approachable, affordable, and encourage ownership

involvement. Authenticity in the company's attitude and relationships will be first ensured

in order to achieve this. We will provide the same level of service in all relevant

motorcycle-related sectors, including products and services, in order to enhance the whole

motorcycle experience and provide a "Pure Motorcycling" experience.

3. REVIEW OF LITERATURE

3.1 Identification of Source of Literature

Data collected for the study is secondary data that was gathered from different sources

such as digital articles, papers, research papers of other research scholars, government

gazette.

Secondary sources process primary sources by describing, debating, interpreting,

commenting on, and evaluating them. Reviews of books or films, pieces from

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 newspapers or magazines, and articles from scholarly publications that examine or

assess other people's original research can all be considered secondary sources.

Journals, magazines, and newspapers are considered secondary sources of literature

since they are continuous serial publications that are issued on a regular basis.

Additionally, editorials, review pieces, and book reviews may be included in serials.

Review articles are regarded as secondary sources since they summarise existing

research on a subject without offering any novel insights. But you can find the primary

materials they used by looking at their bibliographies.

The majority of books are secondary sources; authors cite primary source materials

while also including their own analyses. Books can serve as primary sources as well.

Maps, pictures, prints, graphic arts, and actual works of art are examples of visual

artefacts that might shed light on how individuals perceived and/or viewed the world in

which they lived.

3.2 Comprehension of review

3.2.1 Strategic Thinking and Planning

Bikmetov et al. (2020) stated in their research that, running a profitable business

requires initial system optimisation as well as the construction of a strategic stink box.

What actually sets apart strategic growth is the transition from regular work inside an

organisation to an outstanding group of people, where approaches of strategic thinking

build up in a solid temperament for strategic firms. These strategic drivers are based on

modifications in the business environment that have been seen. Gashi (2017) Stated

that, for an organisation to advance effectively and make strategic changes based on

biased circumstances, it must incorporate the display of strategic development. Nickols

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(2016) said that to keep the organisation pleased, developing strategic agreements

demands a great deal of strategic knowledge. Organisations must actively consider and

handle duties in order to go forward, which requires strategic planning. Sloan (2013)

explained that strategic tweaks and more strategic speculating, similar to what you may

do in your storm cellar, are necessary due to the robust trade activity. The objective of a

company's strategic growth is to transform its generally constricted capacity into a

world-class team. The demanding system of strategic commands that sparks all

strategic guessing between different firms is fed by advancements in the business

sector.

Alatailat et al (2019) state in their research that the majority of organisations employ

demonstrating strategic growth as a means of progress by launching tactical

modifications based on skewed circumstances. The basic goals of strategic

development are to achieve and retain competitive advantage also to take advantage of

other conceivable strategic possibilities. Abraham (2012) said, when it comes to

strategic planning, this strategy should not only be used within the organisation, but

also be put into practice and assessed. When choosing the optimal strategic opportunity

for competitive advantage, it is crucial to consider how different company sectors and

competitors often attain distinct freedoms. Simerson (2011) states research, detail,

planning, execution, and development systems based on previous methodologies are the

five main components linked to trustworthy strategic preparation for organisations.

Simerson (2011) states strategic management's cornerstone, strategic planning, relates

to management and the operational desire to create strategies that will be effective in

gaining competitive advantages. Cassidy (2016) in his research states, in order to

prepare for their exciting event, organisations must develop reform-oriented leadership

initiatives. To communicate data and create quick modifications in the development of

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the nursing arrangement, good strategic planning interaction is furthermore necessary.

Bondarenko et al. (2017) stated in their research that in order to provide a means of

enjoyment and take effective action, it is crucial to take pleasure in strategic progress.

Yilmaz and Flouris (2017) stated that as more and more organisations experience

rapid growth, modernising cycles and services to match changing client expectations is

important. This calls for ongoing development and adjustments to business cycles and

services. The development of numerous uncertainties that are growing in the external

environment makes it difficult to appoint directors to make strategic decisions.

Banihabib et al. (2015) state in their research Before developing and putting into

practice a strategy to deal with unpredictable conditions, the organisation should

carefully consider all the advantages and disadvantages of the strategy. Leigh and

Blakely (2016) in their research stated the current global economic crisis has made the

market framework's already-existing weaknesses worse, which has resulted in more

unemployment, a drop in theory production, and a reduction in the market. Businesses

in these sectors need to address the highlighted strategic management issues since they

are experiencing an undeniable level of credit rates, expansion, poor speculative appeal

in most markets, and large fundamental defaults. (Stand, 2015; Bondarenko et al.,

2017) In order to take advantage of chances associated to the quickly changing external

environment, leaders are likely to look for new guidelines and tactics. The path to

suitable and successful decision-making by managers has become more complicated

due to the growing social and political impact. It is acknowledged that these

developments bring about issues and provide younger organisations additional

freedoms. Through well-equipped strategic management, taking into account probable

hazards and tactics to overcome hazards and achieve desired goals, stable growth

within smooth changes in the external environment is likely to be realised.

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3.2.2 Marketing Techniques

Gashi (2017) stated strategic marketing uses a permanent, distinctive location to

identify and generate incentives for firms. Organisations do this through influencing

their own lifestyle and their strategic responsibilities in order to build a strong shopping

centre. These strategies rely on collaborations, expansion, exchanges, brand

recognition, and consumer relationships to forge an unyielding position. Leandro da et

al. (2021) stated in their research these components are crucial because strategic

marketing identifies the ways in which a company claims to be essential to its

advertising. Sahin, Akkaya & Celep (2017) in their research stated that companies

employ a variety of marketing techniques, such as unions, communication, expansion,

and consumer interactions, in order to establish a credible stance. Paurova &

Nadanyiova (2020) stated that the marketing mix is another tactic that is primarily

employed by service sectors.

Pandit (2017) stated that the concept of strategic management is viewed as a

significant differentiator that aids the organisation in surviving in the global market,

where it is considered that comprehensive development is only feasible if strategic

management is paired with development thinking. Bikmetov et al. (2020) in their

research stated Two fundamental inquiries regarding joining a foreign market are what

strategic marketing searches for. Organisations wishing to enter the general commercial

sector would benefit most from organising strategic advertising from a marketing

direction point of view. Sahaf (2008) said that a steady concentration of personnel is

needed to represent organised organisations in all areas of buyer needs and in

challenging situations.

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3.2.3 Strategic Management in International Business

Boshkov & Drakulevski (2019) stated in their research numerous organisations have

acknowledged the significance of numerous developing businesses since, during the

past ten years, they have provided the domestic market with access to cheap labour.

Additionally, strategic management has grown significantly as a result of its ability to

help organisations function in contemporary circumstances. Gashi (2017) stated that by

creating a good business strategy, a firm can be sure that it has the resources and

strategic expertise required to implement the plan successfully. Strategic partnerships

offer a useful option for countering risks by enhancing product updates, destroying

entire companies, quickly boosting a market niche, and integrating weak offices and

capacity. Lasserre (2017) stated that organisers in new nations should work more to

coordinate their activities in the global economy. C (2018) found that the performance

of businesses is impacted by learning organisations. Typically, international strategic

management would advocate for the techniques of thriving organisations in many

market contexts.

Lasserre (2017) Then, some references to emotional changes are made;

Gamal & Montash (2020) stated that international rivalry and some strategic

overlaps between hierarchical organisations in general, as well as between them

specifically, are some strategies connected to managing an international firm.

• For e-businesses to establish a competitive edge, strategic management is seen as a

key element of acquiring competitive advantages via flexible expenditures.

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• Top management must actively promote, be held accountable for, and be involved in

the proper combination of strategic guidelines.

• In some situations, the existence of currency blocks encourages the development of

global strategy.

Aaker & McLoughlin (2010) stated in their research that the core of an organisation is

growth under the appropriate business model. Even with the right negotiation strategy

in place, issues are likely to persist despite it.

Bryson (2018) concluded in his research that the conditions are kept current with regard

to the market's shifting dynamics and new market openings. Any system can be

effective if the organisation develops and has strategic competences and skills. A

distinctive perspective connected with stringent plans and requirements to reach new

business regions for sustainable worldwide presence and development was considered

as the most straightforward method to do this with fewer strategic issues and an

international strategic coalition. The greatest and most suitable approach to achieve

market success is thought to be strategic affiliation with organisations operating in a

related field of endeavour.

Buckley (2016) in his research stated that, threats can be supported by strategic

alliances, which are also in charge of identifying the many methods for opportunities to

be mitigated. By bolstering the market's fast-paced sector, increasing resources, and

bringing together underperforming offices and talent, it is possible to lessen the strength

and recurrence of new threats while also reducing overall operating costs. The benefits

shared by all partners in the firm can lower the overall price of the desired product or

direct attention to global strategic alliances (Brouthers et al., 2015). (Alatailat,

Elrehail, & Emeagwali, 2019) stated that it is possible to postpone creation in order to

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 reduce the cost of a location with more nations and territories in order to highlight the

benefits of being close by. Buckley (2016) in his research stated that cost reduction

is viewed as a driving force for organisations to promote the company's economy in the

event that demand in certain products is restricted to a particular area. Hill et al. (2014)

concluded that the strategic union, a component of global management technology, is in

charge of speeding the process by which enterprises are given the ability to pursue

long-term objectives.

3.2.4 Performance of Royal Enfield

K. Reenareicha et al (2019) in her report, "A Study on Customer Satisfaction Towards

Royal Enfield Bike in Tiruppur City," the aim of this study on customer satisfaction

was to help us understand the requirements and wishes of the customers towards Royal

Enfield. The study may offer pertinent and timely information regarding the level of

client preference towards Royal Enfield. Analysing client happiness and determining

consumer preferences for the humorous brand Royal Enfield are the study's main goals.

The services and other elements that customers consider when buying Royal Enfield

motorcycles are also investigated in this study, as well as the expectations that

customers have of the company. To learn about customer satisfaction and the factors

that affect a customer's choice during the purchasing process. Culture, society,

personality, and psychology all have a big impact on how satisfied customers are. 75

clients were chosen for this reason, and using the questionnaire method, different

replies were acquired from them. Overall, it has been shown that the majority of clients

choose Royal Enfield automobiles due to their vehicle appearance, pickup, high-quality

models, and engine appearance, among other factors.

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Mariya & Amutha (2018) In their study, "Customer satisfaction level towards Royal

Enfield bikes (with special reference to Coimbatore city)", said that the goal of the

study was to examine how satisfied customers were with Royal Enfield bikes in

Coimbatore city. The report's goal contributes towards our understanding of client

demographics and purchasing patterns. The preference for the Royal Enfield is the

subject of this study, which is conducted using customer survey data. Simple

percentages and chi-square were utilised as tools and approaches. The study's

successful conclusion shows that students are the primary users of Royal Enfield

bicycles, and the majority of respondents favour Royal Enfield because of the brand's

reputation for comfort. The manufacturer needs to make improvements to the Royal

Enfield bike's mileage, model, and colour.

Ahmed et al. (2014) According to their report titled "A Study On Customer

Satisfaction Level Of Royal Enfield Bullet," stated that this study on customer

satisfaction is connected to one of the top two-wheeler manufacturers, Royal Enfield.

The subject matter is explained in the following paragraph, which also includes a brief

note on the issue that has been addressed. We shall investigate Bangalore City's Royal

Enfield Bullet owners' levels of satisfaction in this project report. In the current market

environment, the issue it is having. The different aspects that keep the consumer

delighted are evaluated in this project. Additionally, it assesses the different aspects that

affect a customer's decision to purchase the bullet. The brand image, colour, fuel

efficiency and technology employed, etc. are just a few of the factors that should be

considered while choosing a bullet. A questionnaire was created to conduct the survey,

and the information gathered from the right respondents was evaluated using the

statistical programme SPSS. A one-way ANOVA test was then performed to assess the

hypothesis.

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Gopalakrishnan & Rengarajan (2017) According to their "A Study On Service

Quality In Royal Enfield Showroom, Chennai" article, this research looks at how

customers perceive the quality of the service in the showroom. It begins by analysing

the theories behind the conceptualization of service excellence. The showroom is then

studied using a modified SERVQUAL instrument, with one of the companies serving as

the subject. It is determined that there are five service dimensions: READINESS

RELIABILITY, TRUST, COMFORT, SECURITY, and ACCESS. They are looked at in

terms of how they affect customers' perceptions of the company's overall quality and

whether they would refer the business to a friend. Two dimensions—trust and comfort

—are discovered to have a significant impact on these factors. The fundamental finding

of the current analysis is that SERVQUAL provides a reasonable starting point for

quantifying service quality, however it is neither generic nor directly applicable. To

meet each unique circumstance, the SERVQUAL instrument would need to be

modified. If all it involves is discounting, no marketing is required. Promote services

using quality.

Ashokkumar & Venkatesh (2017) stated that the world was extremely different back

then, and there must have been a great deal of enthusiasm, according to their article

titled "A Study on Customer Satisfaction towards Royal Enfield in Dharmapuri". The

systematic gathering of data from sources outside the business or research organisation

is known as marketing research. In south India, particularly in the city of Bangalore,

Royal Enfield was doing fairly well.

Faisal (2014) from his study we learned that the purpose of "A Study on Customer

Perception towards Royal Enfield with Special Reference to Malappuram District" was

to determine the level of customer perception of Royal Enfield motorcycles.

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Fortunately, the analysis shows that the majority of Royal Enfield clients are extremely

satisfied in practically every service area provided by Royal Enfield. This study

demonstrates that by enhancing fuel efficiency, customer service, advertising, and the

introduction of new models, one may compete with the more recent products on the

market.

Manokari (2013) stated that in Coimbatore, Tamil Nadu, a survey was conducted to

determine what buyers prefer about Royal Enfield motorcycles. The results of this data

study show how much consumers favour and how pleased they are with a range of

Royal Enfield characteristics, which are largely impacted by societal, psychological,

and individual aspects. Customers of Royal Enfield claim that in order for

manufacturers to acquire market share, they must offer the best combination of look,

quality, cost efficiency, advantageous characteristics, safety, and performance. This

element has also been credited with the company's lengthy track record of more than 10

years.

Tripathy (2016) concluded in a study on bike users' pleasure called "A Study on

Consumer Satisfaction of Two-Wheeler Bikes" examines this topic. According to this

study's findings, TVS achieves the lowest levels of satisfaction while HONDA, BAJAJ,

and HERO achieve the highest levels in terms of power, design, technology, and after-

sales service. The TVS needs to put a lot of effort into the parameters used in the

investigation. It demonstrated that customers carefully weigh all of the factors before

choosing a bike, therefore businesses should have this in mind when designing new

products to ensure that not even the slightest aspect of them leaves customers

unsatisfied.

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 Santana (2007) stated that the two-wheeler industry is examined in "Issue and Future

of the Two-Wheeler Industry" in terms of a number of problems. Used automobiles and

cheap cars are likely to compete with the sector in terms of price. Declining profits

brought on by higher material costs and a move in consumer desire towards electric

vehicles in an effort to reduce patrol costs are further problems. There are forecasts for

the industry to rise by 5%, with motorcycles set to account for the majority of this

increase. In order to meet demand for exports, several Indian motorcycle manufacturers

may potentially establish factories abroad.

Chandra (2011) in his research "A study of bike purchasing trends by consumers." The

study's main focus is on how consumers' attitudes about power category bikes are

rapidly changing, as well as how satisfied bike users are with their purchases. Fifty

respondents from four districts made up the sample size used to get the data. The chi-

square test is the method employed in this investigation. A 53% high level of happiness

with their motorcycles was reported by respondents, according to the study. With their

bikes, 47% of respondents are happy. The majority of respondents, it was discovered at

the end of the survey, were familiar with several well-known bike brands.

3.3 Identification of the research gap

i. The strategic management methods Royal Enfield has used to realise its vision.

ii. There is a significant difference between how Royal Enfield performs in India

and on the international stage.

iii. The effect of technology on a company's brand value and contrast it with the

global market.

iv. Diversification and reducing the harmful effects of the internal and external

environment.

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 4. RESEARCH METHODOLOGY

4.1 Scope of the Study: Strategic Management, International Marketing, Royal Enfield,

Indian market scenario, International Market scenario

4.2 Period of the study: Since inception in the international market

4.3 Nature of research: Descriptive research and exploratory research of marketing

strategies of Royal Enfield.

4.4 Type of Data: Secondary Data

4.5 Target Population: Royal Enfield

4.6 Sampling size:

4.7 Sampling Method: Purposive Sampling

4.8 Analysis Design: (i) Environment Analysis

(a) Internal analysis

(b) External analysis

(c) Industrial analysis

(d) STP analysis

(ii) Strategies Adopted by the company

(a) Operational Strategies in Developed and developing nations

(b) Corporate and Business-Level Strategies

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 (c) Global outlet management practices

(d) Corporate social responsibility

4.9 Variables: (i) Dependent: Global Market

(ii)Independent: Strategic management of the company

5. ANALYSIS AND DISCUSSION

5.1 Environmental Analysis

5.1.1 Internal analysis:

(a)RBV framework

Enterprises and organisations utilise a framework and approach for strategic management

referred to as the Resource-Based View to identify and strategically utilise the resources

that are available to them in order to achieve a sustained competitive advantage over the

business. The RBV framework is founded on evaluating, choosing, and strategically

combining resources that will show to increase an organization's competitiveness.

According to the RBV, every organisation and business has access to, possession of, and

control over resources, which enables them to acquire a competitive edge. In order to

improve long-term performance, some of those assets are also required. To expand on the

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idea of these resources, it is feasible to acquire a considerable competitive advantage by

possessing and exercising control over resources.

1. Tangible assets

Resources that are physical in character and are simple to distinguish by the

organisation and rivals are referred to as tangible resources. Additionally, these

resources can be quickly procured from the market or, over time, developed. Due

to this aspect, it is possible for rivals to acquire the same or similar resources. They

offer the business little to no added competitive edge in the future.

i. Land

For Royal Enfield, the land is a physical resource. This includes all the property

that the company owns or rents for the purpose of housing manufacturing units

and storing goods. Physical resources underlying the land also include any

storage facilities that the company either owns or hires for packaging.

ii. Equipment

Equipment is a different type of physical resource for Royal Enfield that includes

all the machinery the company owns for use in producing goods, packing, and

other operational tasks. In this approach, all technical advancements and

technology integration for improving processes and procedures may also be seen

as a supplementary component of the machinery the company utilises to enhance

its product line that includes economies of scale.

iii. Materials

The term "materials" refers to any raw material and other packaging supply that

Royal Enfield uses for the effective manufacture and packaging of its goods.

Because the resources are easily available and real, other players can utilise them

for both their own production processes and other purposes.

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 iv. Supply

Supplies from Royal Enfield, which comprise all of the things and materials

needed for the business's manufacturing and packaging requirements, are a

physical resource. Other Royal Enfield activities also require the items and

support materials that are contained in supplies in order to properly accomplish

their goals and objectives.

v. Facilities

Furthermore, Royal Enfield's facilities are an observable asset that rival players

might use to distinguish them from the company. The facilities contain all of the

manufacturing units, warehouses, workplaces, and other supporting activities and

structures for the firm. By simplifying these operations and procedures, the

facilities help the business function well. The interior architecture and decor of

Royal Enfield's facilities are also included in the list of amenities; these features

are intended to enhance performance and preserve the company's reputation.

vi. Infrastructure

The provision of electrical resources, including electricity, to its factories by

Royal Enfield, together with every aspect of the infrastructure in the form of

technology, buildings, supplies for offices, and maintenance, are all covered. The

construction of infrastructure is a significant resource since it allows for the

assurance of high performance and ease of use for the company. Although it may

be easily accessed by other players who may later create comparable resources

for their own goods and purposes, like other tangible resources, it is still possible

for it to be depleted.

2. Intangible assets

22
 When a company, like Royal Enfield, owns and/or has access to intangible resources,

they are nevertheless considered to be of value. Due to connected elements and aspects

of Royal Enfield's historical singularity, causal ambiguity, and social complexity, rival

players are frequently unable to acquire or purchase the intangible resources that are

available to the company. For Royal Enfield, intangible resources serve as the

foundation of its competitive advantage because they are generally unique and are

likely to remain within the company over the long term. Because they are difficult for

rival companies to duplicate in factor markets, Royal Enfield's intangible resources are

also considered a source of the company's success.

i. Brand Reputation

Royal Enfield has a long history of invention, over which time it has invested a

great effort to provide high-quality products and gain the trust of its clients. This

lengthy history of innovation is the foundation of the company's brand image. The

company's unique brand reputation, built on its organisational atmosphere and

unique interaction with consumers, cannot be replicated by competitors and may

even provide it with an edge over others.

ii. Intellectual property

Competitor businesses are prohibited from copying Royal Enfield's production

processes or having access to its unique product blend, product components, or

inputs thanks to intellectual property regulations. By doing this, the uniqueness of

the company's goods and manufacturing techniques is maintained. This keeps the

goods of Royal Enfield unique and sets them apart from those manufactured by

other businesses.

iii. Patents and copyrights

23
 Patents and copyrights provide Royal Enfield protection not just for the way its

goods are created and designed, but also for the research and development it carries

out to upgrade and better those items. These patents and copyrights protect Royal

Enfield against any infringements and imitations.

iv. Goodwill

Once again, historical exclusivity has contributed to the formation of long-lasting

goodwill for Royal Enfield, which has been facilitated by the brand's reputation

and customers' experiences. Overall brand equity for Royal Enfield has increased

as a result of this. The Royal Enfield brand has consistently worked hard to build

the company's goodwill over a lengthy period of time, and other players cannot

imitate it.

v. Trade names

A second intangible commodity for the company is its trade name, which rivals are

unable to use or imitate. The brand name is well-known to consumers, which aids

in the company's international recognition. The brand promise and values are

communicated to customers all around the world via the trade name, giving the

company a competitive edge.

vi. Customer experience

Royal Enfield provides its clients with a unique customer experience through its

trademarked activities, goods, and marketing efforts. Even though competing

businesses may copy Royal Enfield's marketing strategies, the strategic direction

and aim with which the consumer experience and corporate operations are

produced are different and give the company a specific source of competitive

advantage.

vii. Trade secrets, patented technologies, including databases and software

24
 Royal Enfield has been successful in its business activities and operations and

boasts a substantial customer base that is devoted and makes frequent purchases

thanks to its secrets of trade, which also include possessing a secret recipe for

product competitiveness. Additionally, Royal Enfield routinely develops new

technology that is invented domestically and is hence patented. This also includes

software as well as hardware for boosting the business' operational procedures,

giving the enterprise a competitive edge in the key markets.

viii. Video and audio-visual materials

Every piece of marketing material, the clip, and the audio-video content that has

been made, released, and disseminated is a Royal Enfield intellectual resource.

Although the marketing materials are of little actual value, Royal Enfield gains

from them since they assist to build customer awareness of and loyalty to the firm,

which in turn helps advertise the company's brand. Because it is based on a more

thorough business and marketing strategy, the marketing materials produced by

Royal Enfield are unsurpassed by rivals in significant markets.

ix. Customer lists

Royal Enfield provides a wide range of unique product lines for a number of target

consumer segments and target target groups. Additionally, the company operates

internationally and has consumer marketplaces in more than 100 different

countries. Based on this, it is reasonable to state which Royal Enfield has

established distinctive customer marketplaces that share characteristics across a

variety of countries. This client market also includes a variety of consumer

groupings and classifications. As a consequence, Royal Enfield has different

consumer bases in various countries, and this is tough to imitate in large part

because of the social complexity involved.

25
 x. Agreements relating to licencing, royalties, and standstill

xi. Royal Enfield has developed unique Agreements relating to licencing, royalties,

and standstill throughout time in the many consumer sectors where it competes.

These have been carefully constructed through time as a consequence of the

company's sustained success and reliability as well as the progression of brands

from being just utilitarian to becoming more emotional and lifestyle-focused.

Royal Enfield has developed innovative Agreements relating to licencing, royalties,

and standstill that support its competitive posture in key regions. This has been

made possible by the brand's expansion, its unique attributes, strategic leadership,

and vision.

xii. Import quota

Royal Enfield has forged strategic alliances with other countries in order to impose

import quotas. In addition to the final packaged items, these restrictions also

encompass the import of specific unprocessed goods into other countries in order

to support commercial activities. Other firms are unable to imitate the import

quotas since they were developed in accordance with The Royal Enfield's unique

location and strategic direction.

xiii. Franchise agreements

With respectable corporate partners, Royal Enfield has unique franchise

agreements for the purposes of manufacture, distribution, and sales. This has

provided the company access to a wide range of markets in addition to financially

and culturally defending it against prospective challenges. The franchise

agreements are also ethereal in nature and dependent on specific, trustworthy

relationships preserved by Royal Enfield.

xiv. Customer and supplier relationship

26
 At Royal Enfield, there are particular relationships between customers and

suppliers. As a consequence of consistent conduct, the growth of trust, and a full

disclosure of acts and intentions, the relationships between consumers and vendors

have been stronger through time. Strong relationships with its customers and

suppliers help Royal Enfield build global networks that are successfully carried

out, well maintained, and, for the next few decades, largely unmatched by

competitors.

xv. Marketing rights

The strategic management and course of action of the company, as well as its

history, compliance with laws, and prior success, all influence the company's

marketing privileges in multiple nations. This is impossible for other players to

replicate, preventing them from obtaining it. This is done in order for Royal

Enfield to continue to have a substantial edge over other market players. It has

continued to do so through time and with the use of exacting techniques.

3. Heterogeneity

The RBV assumes heterogeneity when it claims that assets based on abilities and

expertise, such human resource operations, training, and talent, vary from business to

firm. This variable determines whether or not optimal competition-like qualities

develop. As a result, in cases of heterogeneity, the RBV assumes that every

organisation has a distinct combination and amount of resources, leading them to

pursue varied strategic paths and make various strategic choices in response to the

same external pressures and conditions.

This means that, given the distinct mix of resources at its disposal, Royal Enfield will

make a strategic decision and a choice that will be significantly different from those

made by its rivals under identical external environmental conditions. Due to the

27
 assumption of heterogeneity made by RBV, Royal Enfield is able to produce a full

product, beat the competition in facto markets, and get a competitive edge by utilising

special resource bundles and mixtures.

4. Immobility

The presumption of stagnation is the RBV's underlying concept that the assets of the

company are immobile and cannot be transferred across organisations, perhaps not

immediately. The RBV relies on the notion of short-term immobility to support its

belief that rival organisations cannot recreate, replicate, develop, and put into action

plans and actions that are exactly like those of Royal Enfield. Intangible resources have

a mostly immobile nature at their core.

Most of the immaterial assets that Royal Enfield has access to are diverse and

immovable in nature. Due to the developments and tactical adjustments made by

competitor players, the factor market participants may view the material assets to be

homogeneous and immovable in the near term.

5. VRIO analysis

The characteristics of unpredictability and immobility are inadequate for Royal Enfield

to efficiently deploy resources to gain a competitive advantage. For the organisation to

achieve the VRIO criterion, resources must be recognised in order to determine whether

they can be used and enhanced to provide a competitive advantage in tandem with

sustainability.

The VRIO framework is used to assess tools based on their worth, rarity,

distinctiveness, and organisation. The VRIO strategic tool may be employed to the

resources to determine whether Royal Enfield's recognised resources allow for the

long-term creation of a competitive advantage. This is what Royal Enfield sees as:

Table 1: VRIO analysis of Royal Enfield

28
 Resource Valuable Rare Inimitable Organized Advantage

Land ✓ ✕ ✕ ✓ Competitive parity

Equipment ✓ ✕ ✕ ✓ Competitive parity

Materials ✓ ✕ ✕ ✓ Competitive parity

Supplies ✓ ✕ ✕ ✓ Competitive parity

Infrastructure ✓ ✕ ✕ ✓ Competitive parity

Facilities ✓ ✕ ✕ ✓ Competitive parity

Brand reputation ✓ ✓ ✓ ✓ Competitive

advantage

Intellectual property ✓ ✓ ✓ ✓ Competitive

advantage

Patents and copyrights ✓ ✓ ✓ ✓ Competitive

advantage

Goodwill ✓ ✓ ✓ ✓ Competitive

advantage

Trade names ✓ ✓ ✓ ✓ Competitive

advantage

Customer experience ✓ ✓ ✓ ✓ Competitive

advantage

Patented technology, ✓ ✓ ✓ ✓ Competitive

29
computer software, advantage

databases and trade

secrets

Video and audiovisual ✓ ✓ ✕ ✓ Temporary

material competitive

advantage

Licensing, royalty and ✓ ✓ ✕ ✓ Temporary

standstill agreements competitive

advantage

Customer lists ✓ ✓ ✓ ✓ Competitive

advantage

Import quotas ✓ ✓ ✕ ✓ Temporary

competitive

advantage

Franchise agreements ✓ ✓ ✕ ✓ Temporary

competitive

advantage

Customer and supplier ✓ ✓ ✕ ✓ Temporary

relationships competitive

advantage

Marketing rights ✓ ✓ ✕ ✓ Temporary

competitive

30
 advantage

HRM skills ✓ ✓ ✓ ✓ Competitive

advantage

6. Competitive advantage

A collection of circumstances or the control and administration of resources that

provide Royal Enfield an edge over competitors in the market is known as a

competitive advantage. Royal Enfield continues to be capable to beat rival businesses in

many key regions thanks to its accessibility to these assets and advantageous market

conditions. It has also developed a distinctive clientele that is in considerable demand

for both its unique product offerings and high-quality items. However, over the long

run, the assets of an organisation that it owns, manages, or possesses successfully

satisfy all VRIO requirements, thus competitive advantage develops over time and is

often sustainable.

Other types of advantages are created for Royal Enfield when the resources accessible

to the corporation are diverse, immovable, and of a nature that only partially meets the

VRIO criteria. This contains:

Table 2: Analysis of the competitive advantage of Royal Enfield

Competitive Royal Enfield would be at a disadvantage in terms of competition and

disadvantage may perform poorly in relation to its competitors if it had access to

resources that were of no value at all.

Competitive The assets which allow Royal Enfield to deliver the normal and average

parity results and accomplishments in a marketplace are the ones that support

31
 the growth of competitive equilibrium for the business.

Short-term This demonstrates the benefits and superior competitive advantage that

competitive Royal Enfield has. However, this is more of a transitory phase given that

advantage rivals and players in factor markets may imitate the assets in the future. In

a similar spirit, they may eventually be bought by players in the factor

marketplaces. As a result, even if they provide Royal Enfield an edge

over the competition, this advantage is just temporary and not long-

lasting.

Competitive A benefit produced by Royal Enfield based on its assets in order is both

advantage long-lasting and sustainable. This is unusual in the sector and has

developed as a result of historical values linked with it. Resources may be

used by Royal Enfield to steadily boost its competitive edge.

(b)SWOT Analysis

SWOT analysis is a technique for identifying and evaluating internal and external advantages

and disadvantages, as well as potential threats and opportunities that have an impact on both

present and future operations as well as help in the development of strategic goals.

1. Strengths of Royal Enfield

i. Royal Enfield has established a solid brand identity and gained the confidence of

customers in the market.

ii. Royal Enfield's recognised brand identity is largely due to its high standards for product

quality.

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 iii. Royal Enfield maintains an internal R&D facility that is in charge of expanding the line

of products offered by the business and preserving consumer confidence.

iv. Over the last five years, Royal Enfield has seen a more than 50% increase in its global

sales.

v. In order to accommodate the growing demand, Royal Enfield has extensively invested

in building fresh manufacturing plants in the UK. The company exports bikes to over

than 30 different nations.

vi. Effectiveness of Royal Enfield's Advertising

2. Weaknesses of Royal Enfield

i. A few consumers have issues with the motorcycle's weight.

ii. The low mpg of high-power motorcycles is a drawback.

3. Opportunities of Royal Enfield

i. The industries with the quickest growth is the two-wheeler one.

ii. Export restrictions on bicycles suggest the existence of untapped international markets.

4. Threats of Royal Enfield

i. In the cruiser sector, Royal Enfield is up against competition from a variety of foreign

motorcycle manufacturers. It and high-utility motorcycles are rivals in the market. A

decline in market share is the result of increased competition.

ii. Due to their low mileage, as already said, Royal Enfield motorcycles will be less

popular if fuel prices rise.

33
 iii. Royal Enfield will be impacted by better public transport.

5.1.2 External analysis:

(a) PESTEL framework

According to a variety of criteria, Royal Enfield PESTLE Assessment assesses the company's

business plans. The PESTLE Evaluation of Royal Enfield looks at the many external factors

—political, economic, social, and technological—as well as the implications for the legal

system and the environment—that have an impact on its operations. Focus is placed on the

many extrinsic elements that have an impact on the brand's business in the PESTLE Analysis.

The PESTLE analysis technique is essential for businesses like Royal Enfield because it

helps them analyse market trends and continuously improve their operations.

 The following explanations provide context for the Political variables included in Royal

Enfield PESTLE analysis:

The manufacturer of Royal Enfield motorcycles is highly recognised across the world.

Business operations are significantly impacted by the government's policy decisions. It might

offer opportunities for growth or it could be quite dangerous, potentially to the extent of

causing the firm to shut down. In a recent decision, the government decided to completely

forgo BS-5 engines and move immediately following BS4 engines towards BS6 in 2020.

Because we are lagging behind because BS laws have their foundation on EURO standards,

the government decided to implement BS-6 directly. Now, the problem is that BS6 is

scientifically complex, therefore a lot of money has to be put in creating the BS6 engines, that

34
will raise the overall expense of the bike and hike the retail cost of the the Royal Enfield

motorcycle, that is already an extravagant bike.

 The following explanations provide context for the Economic variables included in Royal

Enfield PESTLE analysis:

The GDP, income per person, rate of inflation, and the income per person of the country in

which the business is conducted all have a significant influence on that firm.

Royal Enfield originated in India. Thanks to the current economic upswing, Enfield has a

great chance to increase its consumer base across the country. The growth in middle-class

income significantly boosted Enfield's bike sales because the firm operates in the semi-

premium sector while the per capita income of India increased swiftly as a result of the

economic boom. One may now order a Classic 500 cc motorbike from the company and then

get it just nine months later since it has been such a huge hit with customers. The Royal

Enfield company intends to introduce its motorbike in several additional nations, but first it

must carefully assess the economic climate in those nations. The following explanations

provide context for the Societal variables included in Royal Enfield PESTLE analysis:

People retain the brand name in their brains for an extremely long time. Young people in

India are beginning to purchase goods from companies that advertise status symbols. Royal

Enfield has established a reputation for itself in the marketplace. The booking period is 9

months because of the high value of the brand, which means that consumers can expect their

motorcycles 9 months after making their orders. Royal Enfield is currently viewed as an

identity symbol by people. Its weight and hefty tone make it more appealing in people's eyes.

The business began the Ladakh biking campaign, and it was so well welcomed that it is now

necessary to ride an Enfield there. In either a solo or group setting, this ad inspired people to

35
bike great distances on an Enfield. The Rider Mania, the most massive gathering of Royal

Enfield supporters worldwide, has just begun.

 The following explanations provide context for the Technological variables included

in Royal Enfield PESTLE analysis:

R&D is a major area of investment for Royal Enfield. For its bikes, it developed the

unmistakable thud noise engine, which quickly became well-liked by motorcyclists. The

engine is continually being improved to increase fuel efficiency while preserving the bike's

classic sound and feel. In addition to being highly active on social media, Royal Enfield

frequently engages with its consumers, asking their feedback on the development of new

products and rectifying any concerns they may have posted online.

A test track, an engine research facility, and other facilities are all part of the innovation hub

Royal Enfield built in the UK in 2017.

 The following explanations provide context for the Legal variables included in Royal

Enfield PESTLE analysis:

The laws and regulations that a country's executive branch, as well as judicial system

established, must be abided by a company. Royal Enfield is frequently in the news, and not

necessarily for the best reasons. Customers frequently complained to businesses about faulty

brakes and also clutches, distorted engine noises, magnetic coil issues, etc., and when the

business did not remedy the problem, the customers became very dissatisfied. The New Delhi-

based manufacturer of automotive parts, Flash Electronics, has launched a lawsuit against

Royal Enfield alleging that the motorcycle manufacturer violated a regulator-rectifier patent.

 The following explanations provide context for the Environmental variables included

in Royal Enfield PESTLE analysis:

36
No company can now ignore the growing environmental concern about the increase in petrol

and diesel use, which are the primary causes of environmental degradation. The bikes made

by Royal Enfield are huge, inefficient, and need a lot of gasoline. Improvements are being

made to the Royal Enfield motorbike to make it more fuel-efficient.

The company is increasing public awareness of environmental protection through its varied

endeavours. The firm has made it a goal to spread awareness using its most important

material, its motorists, who not only help to build the brand's image but also support

environmental awareness programmes. The company's last Rider Mania 2019 ceremony, an

annual meeting of Royal Enfield riders globally, is helping to spread awareness of single-zero

plastic use.

(b)Porter’s 5 forces

The Porter's Five variables technique defines and examines five competitive variables that

have an influence on every business in order to identify the strengths and weaknesses of an

industry. The Five Forces approach is frequently used to analyse the framework of an

industry in order to determine company strategy.

Any area of the economy can benefit from using Porter's technique to more accurately

determine industry competitiveness and increase the profitability of a business over the

long run. The Five Forces concept was developed by Professor Michael E. Porter of the

Harvard Business School.

a) Threat of new entrants

37
 Globalisation has helped Royal Enfield effectively grow into over fifty different nations,

but it is also introducing new rivals in the Indian market. Several companies, namely

Honda, Triumph, Benelli, Kawasaki, and even Harley Davidson compete with the

company. Triumph and Bajaj have partnered up to release their low-cost cruiser in India,

where it will face off against the Classic as well as Thunderbird series. In order to

compete with the Interceptor 650, Harley Davidson also plans to relaunch its Street 750,

which was the least expensive Harley on the market at the time.

b) Bargaining power of buyers

Due to the small number of big two-wheeler enterprises in India, buyers have the

advantage over suppliers. Because the bulk of people in the Indian market fall into the

middle-class category, retailers are not allowed to set their prices for their goods

excessively high. In terms of sales, Royal Enfield, which has a starting price of INR 1.71

lakhs, has consistently concentrated on that specific market rather than serving the entire

segment. With more than 8 lakh units sold in the previous year, one might argue that the

bike's price is competitive.

c) Bargaining power of suppliers

Metal is a fundamental component needed to make motorcycles. The demand for Royal

Enfield products is now so great that the company needs to maintain a good working

relationship with its suppliers. Supply of the raw material rises in tandem with rising

demand. The basic materials needed to make motorcycles are steel, aluminium, tyres,

and tubes. For the seamless production of their motorcycles, these ingredients must be

readily available.

d) Threat of new substitutes

Only electric bikes or public transport remain as alternatives due to the rising cost of

petroleum. The two-wheeler industry's replacement goods include buses, cars, trains, and

38
 other modes of transportation. Alternate fuel research is also ongoing and, when it is put

into use, will pose a new threat.

e) Competitive rivalry

KTM 390, Jawa 42, and Bajaj Avengers are currently competitors of Royal Enfield.

Though, given its huge market position in the sector at this point, the corporation need

not fear. Those who cannot afford a Royal Enfield, however, usually choose the Bajaj

Avenger because of its lower price. There isn't a bike under 350CC at the moment,

therefore the company plans to fill the void with a 250CC motorcycle, which will face

fierce competition.

5.1.3 Industrial analysis:

(a) External Factor Evaluation Matrix

Table 3- EFE matrix of Royal Enfield

Serial no. Key External Factors Weights Ratings Weightage

 OPPORTUNITIES

1 Growing market 0.08 3 0.24

39
 2 Global expansion 0.05 4 0.2

3 Higher disposable income 0.06 3 0.18

4 Advertisement 0.07 4 0.28

5 Customer relationship 0.03 2 0.06

6 Entering different segments of bikes 0.06 4 0.24

7 Highly customisable 0.09 4 0.36

8 Enhancement in the apparel section 0.01 2 0.02

9 Patent and Copyrighting 0.07 3 0.21

10 Increasing export 0.03 2 0.06

 THREATS

1 Strong competition 0.04 3 0.12

2 Huge number of substitutes 0.08 3 0.24

3 Export regulations 0.07 4 0.28

40
 4 Lack of technology 0.07 4 0.28

5 Heavy weight 0.03 3 0.09

6 Fast wear and tear 0.02 4 0.08

7 Less mileage 0.02 3 0.06

8 Competitors focus on different 0.04 3 0.12

segments

9 No availability of family bikes 0.04 2 0.08

10 No safety 0.04 2 0.08

TOTAL 1 3.28

(b) Competitors Analysis

 Benelli Imperiale 400

A motorbike with a modest appearance that competes directly with the Royal

Enfield Classic line is the Benelli Imperiale 400. It has its roots in the 1950s

Benelli-MotoBi line of firearms. The motorbike has one circular headlamp, split

41
 seats, a fuel tank in the form of a vintage teardrop and a subtle contrast among

chrome and black. The motorcycle's relaxed ergonomics provide hours of

comfortable riding.

A single-cylinder, air-cooled, 373.5cc engine powers the Benelli Imperiale 400.

The fuel-injected drivetrain, when mated with a five-speed gearbox, generates

20.4 PS of power with 28 Nm of torque. In contrast, the Royal Enfield Classic

350's 346cc engine generates 20.07 PS of power along with 28 Nm of torque.

The Imperiale 400's anchors consist of a 300 mm disc that has a two-piston

calliper at the front part and a 240 mm unit having a single-piston calliper in the

rear. The motorbike is equipped with spoked 18-inch wheels at the back and 19-

inch alloy wheels up front. The latter receives tyres with a 130-section profile.

A 41 mm standard telescopic fork up in the front and two springs in the back are

responsible for suspension. A twin-pod instrumentation device with a small LCD

screen completes the equipment. There are useful tank grips for the 12-liter petrol

tank.

Priced at Rs. 1.69 lakh (ex-showroom, Delhi), the Benelli Imperiale may be

reserved for Rs. 4,000.

 Kawasaki W800

The Kawasaki W800 was widely anticipated for a while. In fact, we would have

become billionaires if we had a cent for each time launch rumour circulated.

Although the price for Rs 7.99 lakh (ex-showroom, Delhi) might seem high, the

Japanese green monsters have a strong brand reputation, a touch of exclusivity,

and a generous helping of dependability.

42
 A distinctive 773cc parallel twin engine with a vertically inclined cylinder

configuration and a 360-degree firing sequence powers this retro-styled roadster.

You did read that correctly. There will be an audio extravaganza. The Kawasaki

W800 is without a doubt the best-sounding retro-styled bike now on sale.

 Honda CB300R

Honda 2Wheelers India does not frequently launch a high-end model. But

whenever it does, it succeeds in grabbing everyone's attention. That is what the

Honda CB300R is. The new CB300R receives a two-tone design and is

identically styled to the CB125R and CB650R. To fit the neo-retro appearance,

the motorbike receives a rounded LED headlight, chiselled fuel tank, fashionable

tank extensions and alloy wheels.

The CB300R is a vintage motorbike with a tonne of contemporary amenities, in

contrast to the first two motorcycles on the list. The engine, which is effectively a

re-bored variant of the 250cc mill from the CBR250R, is a 286.01cc liquid-cooled

& fuel-injected unit. The engine generates 27.4 Nm of torque and 30.45 PS of

power when mated to a six-speed gearbox.

The front suspension is built up upside-down, while the rear suspension consists

of a monoshock. With a Nissin calliper, the front brakes have a 296 mm petal

disc, while the rear brakes have a 220 mm petal unit. In addition, a dual-channel

ABS based on the IMU is installed on the motorbike. The CB300R also has a tiny

10 litre gasoline tank and weighs only 147 kg.

The Honda CB300R is available for as little as Rs 2.41 lakh (ex-showroom,

Delhi) in terms of price.

 Triumph Street Twin

43
 The Street Twin is exquisite to look at and is designed just like the classics

offered in the 1960s. It is a great deal of reasonably priced item with a Triumph

emblem on the market. However, the Street Twin is still pricey at Rs 7.45 lakh

(ex-showroom, Delhi).

With a 270-degree crank angle and a displacement of 900 cm3, the engine

generates 65 PS and 80 Nm of torque. Five speeds may be found on the gearbox.

There are also dual riding settings (Road and Rain) for the engine, a slipper

clutch, and switchable traction control.

A 220 mm disc with a two-piston Nissin calliper is on the rear brakes, while the

front brakes have a 310 mm disc with a four-piston Brembo calliper. For the

suspension system, KYB provided both the dual springs in the back and the 41

mm standard fork up front.

 Husqvarna Vitpilen 401

Husqvarna Motorcycles, which is owned by KTM, is prepared to launch in India

early next month, with deliveries starting February 2020. Husqvarna Vitpilen 401

will be the first model to go on sale. The motorbike is a creation of art that Kiska

created.

The end product is a futuristic-looking gadget that combines current technology

with a love of the past.

The motorcycle sports a 373cc liquid-cooled, DOHC single-cylinder engine that

was taken out of the KTM Duke 390. It generates 37 Nm of torque and 43.5 PS of

power when at its current tuning. A slipper clutch assists the six-speed gearbox.

44
 The motorbike weighs just 148 kg without gasoline in addition to all of this.

Although shorter motorcyclists might not like the 835 mm high seat height as

much.

In the front, a 43 mm upside-down fork suspends the Husqvarna Vitpilen 401,

while in the back, a monoshock with adjustable preload does the same. These two

products are from WP Suspension, which is owned by KTM. The front wheel

receives a massive 320 mm disc brake, while the back receives a 230 mm one. A

sticker price of less than Rs 3 lakh is anticipated for this Royal Enfield rival.

5.1.4 STP analysis

a) Segmenting

The process of segmenting a market involves dividing it up into identifiable,

approachable, feasible, and valuable categories or sections that have the potential to

develop. The two types of cruiser bikes made by Royal Enfield are leisure and adventure

bikes. These motorcycles act as your travel companions for lengthy journeys. The bike

caters to a specific market that is intrigued by its comfort and performance. For someone

looking for a bike with good gas mileage, a reasonable price, and simple maintenance,

the Royal Enfield may not be the right choice. Royal Enfield motorcycles are quite

expensive. They are priced beginning at INR 1.7 Lakhs. So, if someone believes that by

investing this much money, they would receive a bike that is economical and simple to

maintain, Royal Enfield is not the bike for them.

b) Targeting

Targeting is a marketing tactic that divides a broad market into smaller pieces and

concentrates on a certain segment of the market rather than the entire market.

45
 The audience that Royal Enfield is aiming for is made up of people in the age range of 25

to 45 who enjoy lengthy rides, spend a lot on maintenance and can afford to buy a

motorbike. These people are working executives in Tier 1 and Tier 2 cities, whereas they

are youthful, wealthy, and influential individuals in Tier 3 cities and rural areas.

c) Positioning

When a corporation decides to focus on one or two crucial areas and excels in those

areas, it uses a positioning strategy.

Since its inception, Royal Enfield has marketed itself as a company that creates

motorcycles that serve as status or social symbols. The location of a Royal Enfield

motorcycle is related to a cruiser, adventure and leisurely motorcycle in Tiers 1 and 2.

Your social standing and influence in our society are demonstrated in rural regions by

your bike.

5.2 Strategies Adopted by Royal Enfield

5.2.1 Operational Strategies in Developed and developing nations

In India, Enfield and the Eicher Group initially collaborated strategically in 1990; they

subsequently merged as one company in 1994. Royal Enfield categorises itself as part of

the "lifestyle" sector for motorcycles. Possible turning point: the year 2000. The oldest

motorbike division of the company, Royal Enfield, which is based in Chennai, was at that

time agreed to be either shut down or sold off by the full board of directors of Eicher

46
 Motors. Despite its fame, the bike only sold 2,000 units a month as opposed to the 6,000

that the plant could produce. The bikes had ardent supporters, but there were also

numerous reports about engine seizures, cables snapping on the clutch or accelerator,

electrical problems, and oil leaks. With the gear lever in an awkward location and a

frightening kick-start, many people thought them to be overly heavy and difficult to

maintain. Only 52,000 of the 113 million motorcycles sold in India in 2010—the year in

question—were sold by the business. The brand cannot target the general market because

it is a specialist brand. But in order to remain competitive, they were forced to face the

challenging challenge of ensuring that sales increase steadily and margins keep improving.

According to newspaper sources, India has an expanding need for expensive bikes. Sales

of Kawasaki Ninja, Ducati, and Honda are all rising. In India right now, you can even buy

the prestigious Royal Enfield brand. All of these brands fall within the category of 500 cc

and above. Competition is the brand's last problem. The company itself is the lone rival to

Royal Enfield. Competitors are far too expensive to be a significant threat. Harley costs

Rs. 7 lakhs, but Ninja costs Rs. 4 to 5 lakhs. In contrast to this, Enfield's pricing range is

just Rs. 95,000 to Rs. 1, 70,000.

5.2.2 Corporate and Business-Level Strategies

A company's total approach for attracting potential customers and turning them into

customers for its goods or services is referred to as its marketing strategy. The business's

value proposition, the crucial brand message, details on the demographics of the target

market, and other significant components are all included in a marketing plan. The 4 Ps

(Product, Price, Place, and Promotion) are covered by the marketing mix framework,

which is utilised in the marketing approach of Royal Enfield to analyse the brand. A few

47
 examples of marketing techniques are product innovation, price strategy, and promotion

plan. The success of the brand is aided by these marketing strategies, which are based

within the Royal Enfield marketing mix. Through the adoption of a competitive position in

the market, the Royal Enfield marketing approach helps the brand/company achieve its

organisational goals and aims.

Let's first have a glimpse into the Royal Enfield advertising plan & Mix in order to

understand the company's strategy for its products, costs, marketing, and distribution.

1. Product Mix of Royal Enfield

Motorbike manufacture and promotion are two of the businesses that make up Royal

Enfield, which is a part of the automotive sector. It was initially a motorcycle

manufacturing company for the Indian Army. Bicycles, guns, static engines, and

lawnmowers are some of its further products.

The following are some of its well-known models:

Standard Street: Standard Bullet 350, Bullet X ES 350, Bullet X KS 350

Retro Street: Classic 500, Classic Battle Green, Classic Chrome, Classic Squadron Blue,

Classic 350

Cruiser: Meteor 350, Super Meteor 650, Hunter 350

Café Racer: Continental GT 650, Interceptor 650

Off-roader: Himalayan

Scrambler: Scram 411

2. Price Mix of Royal Enfield

48
 Design of Royal Enfield are highly known for being unusual and stunning. In addition to

being one of the most established and well-respected brands in its business, it is also

among the oldest companies in the two-wheeler market. It is a member of the premium

product category and is currently viewed as an emblem of wealth in the economy. Royal

Enfield has targeted middle-aged customers as well as industries like the military and

travel companies because they believe in overcharging for excellence at all times. It has

adopted a premium pricing approach for its high-quality products. The business provides

a solid and updated product while keeping the core structure that underpins the history of

the brand. As a result, even if the items are pricey, their target demographic is willing to

purchase them.

3. Place Mix of Royal Enfield

With its corporate headquarters in Chennai, Tamil Nadu, Royal Enfield is an Indian

business. Along with more than fifty other nations, it has expanded its market reach to

include India. Other foreign markets include those in Spain, Switzerland, Singapore, the

Netherlands, Russia, Malaysia, Korea, Canada, Brazil, France, Germany, Italy, the

United Kingdom, Japan, Argentina, Australia, and the United States. The business started

by importing 350cc motorbike kits from the UK and putting them together at its Chennai

plant. By 2013, a new manufacturing facility had been constructed in Chennai's

Oragadam, while the factory in Tiruvottiyur had been transformed into a second

production facility, where a range of models and engines were still being made.

In 2015, the business launched a dealership and its North American division headquarters

in Milwaukee, Wisconsin. It started conducting retail business in Indonesia in August

2015. With the help of its extensive distribution network, which includes a range of

49
 dealers and stockists, Royal Enfield is able to easily access consumer markets. In India, it

has 394 dealership stores spread throughout all 29 states and three union territories.

4. Promotion Mix of Royal Enfield

Royal Enfield occupies a unique position in the business as the first two-wheeler

producer to receive a WVTA certificate for conforming to EU laws and requirements. It

has developed a number of promotional methods in order to successfully market its

products to consumers. The company has developed innovative advertising strategies

using print and online media. Its advertising is featured on television, newspapers,

magazines, billboards, and other media. Royal Enfield has kept up with the trends when

it comes to online social media by creating brand awareness efforts on platforms such as

Facebook, Twitter, Instagram, & YouTube. Additionally, it builds goodwill by giving

back to society in numerous ways while promoting its brand by participating in a number

of television programmes. In France's Biarritz at the Wheels and Waves custom bike

event, it displayed its custom bikes. To recognise Royal Enfield's accomplishments,

numerous honours and awards have been given to the company. It has even been praised

by former President Barack Obama as one of the best motorcycles he had ever seen,

however, it did not win Business Standard Best Company of the Year 2015 for either.

Digital Marketing Presence

Throughout the COVID-19 lockdown, the motorbike manufacturer Royal Enfield has

developed online games to keep its customers engaged. The two-wheeler business has

historically relied heavily on offline activations for customer interaction and experiences.

Physical interactions are not viable; thus, brands are compelled to move online.

50
 The company claims that the broad array of programmes has led to the unification of the

diverse yet welcoming Royal Enfield community under one roof and strengthened

relationships among them via their shared love of Pure Motorcycling. This community

includes enthusiastic riders, aspirants, custom builders, and motorcycling groups.

Royal Enfield has carried out a number of digital efforts in recent months. One of the

planned initiatives for fostering social involvement that will keep riders interested during

these exceptional times is the Trip Story programme. The foundation of the advertising is

the finding that during the lockdown, internet interaction and media consuming are at a

record-breaking level.

Advertising Strategy of Royal Enfield

A comprehensive marketing strategy has consistently been a primary focus for Royal

Enfield. Royal Enfield has decided to put a larger focus on customer needs than on

engineering in order to boost the number of motorcycles sold. To increase the visibility

of their products among more people, they launch what customers requested. Royal

Enfield places a greater emphasis on digital marketing because its target market is

middle-aged males who enjoy digital technology. For example, the company has

launched various online campaigns on social media platforms like Facebook, Twitter, and

Instagram. To increase product visibility, it also participates in various events or strikes

deals with various TV shows.

5.2.3 Global outlet management practices

The newly updated 500 CC Classic version from Royal Enfield was unveiled in

Germany in October 2008. The model for J2 was a Bullet from the 1950s with a modern

engine. It was well-liked, and people commended it for being useful and economical

51
with gasoline. In the month of November in 2009, as it was originally made available as

a 350cc motorcycle for Rs. 1.20 lakh, a similar strategy was used to debut it in India.

This also ended up becoming very popular. The price of the Bullet motorbike was still a

bit cheaper than the major international brands, but being slightly more costly than

typical low-powered Japanese bike brand sold in India. Even with the possibility of the

brand's enhancement, the firm decides against raising the price of its motorcycles in

order to maintain them accessible to consumers in the highly competitive Indian market.

The brand's competitive price and higher operating margins led to a quick rise in the

company's market value. Eicher Motors was one of the most expensive car stocks in

India by the year 2015. The Bullet 500, Classic 500, and Continental GT 535 Cafe Racer

are three bikes that Royal Enfield Motors will offer in Milwaukee, Wisconsin, since they

According to a statement released in August 2015 on the development of the business's

North American headquarters plus dealership located there, the company believes this

engine size offers an underserved market. The showroom would be the business's initial

wholly-owned outlet in the United States, the director in Royal Enfield North America,

Rod Copes.

Initial retail operations would be conducted from a Jakarta dealership. Despite the

declining motorcycle market in India, Royal Enfield had a 50% gain in domestic sales

during April to September of 2015 in comparison to the same period in 2014. The brand-

new "Royal Enfield Himalayan" model, which debuted in 2016, features a 440CC single-

cylinder, air-cooled, four-stroke, SOHC engines and was created to seamlessly blend

with the mountain. Its ability to transport passengers practically anywhere makes it the

most adaptable model, whether it be on or off-road. As the all-weather, all-terrain

motorbike, it positions itself as offering both comfort and adventure. India and Bharat are

52
the two distinct areas to which the corporation advertises its concept. India offers

innovative, lightweight versions with cutting-edge features in an effort to appeal to the

metropolitan population and the young people who live there. The rural population,

known as "Bharat," was catered to by the ongoing production of heavy vehicles that

stayed in use for a while.

Royal Enfield has a distinctive and open corporate culture that fosters a dynamic work

environment. With constant excitement, passion, and interest that extends beyond only

bikes, Royal Enfield maintains for its customers in India and across the world an

affiliation with and a sensation that they belong to an exclusive group. By introducing

bikes with distinctive looks and higher power outputs, encouraging existing groups

around its products, expanding its network, and offering a distinctive motorcycling

experience, the company reinforces its credibility as the industry leader, regardless of

whether it is in the Indian muscle and pleasure bike area or the vintage motorbike

department in another country. The company exudes a particular aura. The relatively few

men who can use it still find it elusive since it is so heavy and difficult to manoeuvre.

Although few people really own a Bullet, many more want to one. No other bike can

compare to the riding pleasure provided by this brand. The rider feels like he has

"arrived" thanks to the brand's thunderous sound, commanding presence on the road, and

pure ego boost.

Royal Enfield has shied away from conventional mass media promotion in recent years

in lieu of concentrating more on building its brand on the principles that the firm

upholds. The only motorcycle manufactured in India that is associated with adventurous

and leisure riding is a Royal Enfield. The cult-favorite Royal Enfield motorbike is

recognised for its versatility, individuality, and endurance. Royal Enfield actively

53
 promotes recreational motorcycling as a profession in order to motivate its riders and

customers to keep riding.

The association organises annual events and rides including the Himalayan Odyssey, The

Tour of Rann of Kutch, The Tour of NH 17 (Mumbai to Goa), The Tour of Rajasthan,

and The Southern Odyssey in this regard. Additionally, it organises the yearly Rider

Mania motorbike event in Goa, which attracts Royal Enfield riders from across the

globe.

5.2.4 Corporate social responsibility

(i) GURUGRAM:

On the heels of National Tourism Day, Shikhar Dhawan Foundation and the Eicher

Group Foundation, Royal Enfield's CSR and Sustainability arm, organised an innovative

ride to encourage the Indian motorcycle community—including Shikhar Dhawan himself

—to come together and ride for the cause of community upliftment. More than 500

motorbike enthusiasts from Amritsar, Delhi, and Agra rode on 28 and 29 January of 2023

with hearts as big as the engines of their machines to deliver various forms of aid to

schools, orphanages, blind schools, zero-line villages, and other places where supplies

and logistics are frequently scarce.

Sewing machines were one of the numerous items that were given out, and they were

given to women who had the ability to sew as a means of obtaining a living. Along with

specialised hygiene kits, specialised walking aids for the blind and excellent wheelchairs

for the disabled were also supplied. In addition to ration packages, which provide a

family of four with food for a month, shawls, and clothing, art kits were also supplied. In

addition, Delhi's tourism hotspots now have two bio-toilets.

54
The riders travelled three scenic or famous routes in Amritsar, beginning at the Golden

Temple and continuing all the way to the Indo-Pak border in the vicinity of Wagah. The

Taj Mahal served as the starting point in Agra and culminated at Mathura and Vrindavan.

The Royal Enfield brand store in Saket in Delhi served as the starting point for the ride.

The Eicher Group Foundation is steadfastly committed to collaborating with local

communities and enlisting the support of the world's motorbike enthusiasts in order to

promote constructive contact and behavioural shifts that will aid in rebalancing our

planet.

The Shikhar Dhawan Foundation is committed to assisting the residents in remote, rural

areas where infrastructure and medical care are lacking.

Shikhar Dhawan said in a speech at the event, "As part of our humanitarian purpose,

Shikhar Dhawan Foundation is thrilled to engage with Eicher Group Foundation for this

community upliftment campaign to create resilience and drive long-lasting

transformation. We also hope to spark a huge movement of motorcyclists around the

world who will actively support us in our mission. Through our joint efforts to assist the

community, we hope to plant the seeds of wealth and happiness throughout the world

through this special collaboration.

In India, riding for fun and travelling on a Royal Enfield is a given. In keeping with the

idea of intentional exploration, Royal Enfield riders have frequently been agents of good,

whether by reducing their environmental impact in an effort to "leave every place better"

or by working with local communities to foster resilience. As a follow-up to the recent

National Tourism Day, the Shikhar Dhawan Foundation and the Eicher Group

Foundation are eager to ride together for the cause of community and social welfare in

55
 some of the most famous tourist destinations in northern India, according to Bidisha Dey,

Executive Director of the Eicher Group Foundation.

(ii) NEW DELHI:

As the Covid-19 epidemic continues to have a detrimental effect on millions of lives

throughout India, Royal Enfield, the marketplace champion in the mid-size motorcycle

sector internationally, has reaffirmed its commitment to aiding India in its struggle

against the disease.

The major objectives of Royal Enfield's activities include the development of long-term

medical infrastructure, assistance for remote and rural regions, and provision of fast

response tools to local governments. With regard to the extent of the second phase and its

subsequent effects, Royal Enfield has devised strategic mid- and long-term plans that are

inspired from the COVID-19 response established by the UN, Build Back Better.

Along with the Rs. 50 crores pledged by the Eicher Group last year, Royal Enfield has

contributed Rs. 20 crores to aid in relief and reconstruction operations.

Along with working in conjunction with state legislatures and non-profit organisations in

Tamil Nadu as well as Delhi NCR, the budgeted funds are being distributed among the

following essential projects and sectors:

i. Developing long-term medical assistance

ii. Promoting livelihoods and providing relief to distant areas

iii. Quick relief

(iii) NEW DELHI:

56
Nihal was aware of the advantages of solar energy as the proprietor of the Royal

Enfield shop in Hardoi, Uttar Pradesh. Little did he realise, though, that it would alter

his course in life.

A turning point for him came with his introduction to Su-Kam's YouTube channel. He

made the decision to solarize his Hardoi showroom at that point.

Currently, the solar plant produces about 5 units of electricity every day, depending on

the weather, and supplies the showroom's 15 lights and 7 fans.

This was made feasible by Su-Kam's initiative, which resulted in the installation of a

solar inverter under the name of Brainy Eco in the showroom. A sophisticated off-grid

solar system called Brainy Eco uses both solar and grid power to function. For instance,

at this office, if they want to use the mains power whenever it is available, they can

choose grid priority so that the load would run on the mains and the battery will be

charged by the mains whenever the mains are available. It will prioritise solar power at

all other times. To maximise the utilisation of solar electricity at all times, one might

choose solar priority in a similar manner.

"Solar energy was a great choice for this dealership because Uttar Pradesh receives a lot

of sunlight—roughly 13 hours every day. We put up a solar inverter and took advantage

of the city's enormous solar potential. According to Kunwer Sachdev, Managing

Director of Su-Kam, the solution is not only environmentally benign but also a practical

way to address the power issue.

Nihal's power problems are now gone thanks to solar energy. "Installing a solar power

system has definitely made life more comfortable for me and my clients. Solar energy

saves the day for a small town like Hardoi where load shedding is the rule rather than

57
 the exception. My activities can function smoothly because the inverter's switch-over

time is quite short. Our electrical costs have also been significantly decreased," he adds.

6. SUMMARY OF FINDINGS

i. RBV analysis: Royal Enfield is capable to beat rival businesses in its accessibility to

these assets and advantageous market conditions, as well as, historical values linked to

it

ii. VRIO analysis: The assets of an organisation that it owns, successfully satisfy all VRIO

requirements, when the resources accessible to the corporation are diverse, immovable,

and of a nature that only partially meets the VRIO criteria.

iii. SWOT analysis: Royal Enfield possesses strengths of strong brand value, status symbol

and legacy; weakness of heavyweight, comparatively lower mileage and less

international reputation, opportunities like more investment on R&D of engine and

design, threats of higher fuel prices, import and export policies, and consumer

preferences.

iv. PESTLE analysis: In the PESTLE analysis of Royal Enfield the political factors are the

import and export policies and the motor vehicle norms regarding carbon emission. The

economic factors are the significant rise in per capita income, which lead to increase in

the purchasing capacity of the middle-class income group. The societal factors are its

high brand value, road presence, status symbol and organising events like Riders

Mania. The technological factors are improving the fuel efficiency and minimising the

carbon emission by using fuel injectors, but still it lags in terms of technology as

compared to its competitors. The legal factors are the compliance with Motor Vehicle

Act and the government regulations regarding carbon emission and noise pollution. The

58
 environmental factors are sustainability in the scrap value of their product, carbon

emission and fuel efficiency.

v. Porter’s 5 forces: Threat of new entrants considers Royal Enfield as a new entrant in the

international market with a huge number of competitors and substitutes. The bargaining

power of buyers considers the purchasing capacity of customers in the international

market, Bargaining power of suppliers considers the supply chain management in the

company for the raw materials and vendors. The threat of new substitutes in the global

market is the most important aspect, as it has a large number of substitutes that may be

superior to Royal Enfield. The Competitive rivalry of Royal Enfield is mainly with

Harley Davidson in the international market, other competitors also take up some

percentage of market share in their domestic market.

vi. External Factor Evaluation Matrix: It has been concluded that the company’s Total

Weighted Score is 3.28. This shows that the company is successful in utilizing its

opportunities and diversifying its threats.

vii. Competitors Analysis: Royal Enfield is facing a large number of competitors with

advanced technology, features, ergonomic design and safety, this is a threat for Royal

Enfield.

viii. STP analysis: Royal Enfield segments its products for long leisure rides and customers

who look for heavy-duty performance, simple maintenance and good mileage for long

rides in all types of terrain. It targets the young generation which mainly consists of

people from 18 to 45 years of age. In the market, it finds its position as a status symbol

for its road presence and glorifying history.

ix. Marketing mix: In the marketing mix of Royal Enfield, the product mix is very

precisely set so that all the demographic segments and geographic segments can avail

and use the products. The price mix focuses on middle- and higher-income class

59
 groups. Place mix is done on the basis of service lines across India, it is also sold in

over 50 countries across the globe. The promotion of Royal Enfield is mostly done on

electronic media, especially on social media platforms.

x. Global outlet management practices: Initiated in 2008, Royal Enfield started its

business in Germany. Now it operates in more than 50 all around the globe. It attracts

its customers by organising various events and rides like Riders Mania, Himalayan

Odyssey, The Tour of Rann of Kutch, The Tour of NH 17 (Mumbai to Goa), The Tour

of Rajasthan, and The Southern Odyssey at the international level.

xi. Corporate social responsibilities: Royal Enfield also focuses on CSR activities in

numerous areas like schools, orphanages, blind schools, zero-line villages, and other

places where supplies and logistics are frequently scarce. During Covid-19, Royal

Enfield pledged Rs 50 cr for developing long-term medical assistance.

7. CONCLUSION

Royal Enfield has all those aspects which can make it a market leader. It has all the

diverse, immovable and inimitable uniqueness that helps it to create its own brand

image in the eyes of its customers. Royal Enfield possesses the strength of loyal

customers, high brand value and glorifying history as its legacy. Still, it lags in some

areas like its heavy weight, lagging behind technology, and low mileage. Royal Enfield

can easily overcome these hindrances by investing more in its R&D as well as keeping

pace with the advancing technology of this growing world. Some factors influence the

performance of Royal Enfield in both the Indian market and the international market,

namely the political, economic, societal, technological, environmental and legal. The

Government rules and regulations interrupt or put a break in the corporate and

operational functions of the organisation. The economy of domestic country and foreign

countries plays a huge role in the growth and expansion of a company. The company

60
also has to keep in mind all the environmental factors like carbon emission, noise

pollution & fuel efficiency.

The study concludes that Royal Enfield has a large number of competitors in the

international market. The company needs to strengthen their management policies to

create a good brand image in every market, using its strong background and

promotional activities. By investing more in R&D, the company can successfully

capture the markets as well as create a brand identity in the country over its

competitors.

The study has also concluded that Royal Enfield targets only the young generation of

Gen-Z and Millennials. This clearly shows that the company is trying to attract young

customers and promote itself through word of mouth. Due to the rise in per capita

income of India, the middle-income group is also capable to enjoy the highness of

riding a Royal Enfield. The company finds itself a market leader in Indian Market but

in contrast, it is unable to capture the markets in foreign countries.

Royal Enfield entered the foreign market in 2008, in Germany. In a global scenario,

better strategic management can help Royal Enfield in capturing global market. The

outlets in foreign markets are run by the Royal Enfield Headquarters in India. The

events organised by the company helps it to create an awareness in the foreign market

about its presence and performance. The CSR activities of Royal Enfield also helps it to

create a positive brand image amongst the customers and the general public. Therefore,

it can be concluded that Royal Enfield has a great potential to perform well and achieve

a good market share in international market.

61
 8. RECOMMENDATIONS AND SUGGESTIONS

8.1 Recommendation for the company

a) The company should focus on technology advancement in its product in terms of

looks, engine and overall performance.

b) The company should target a wide range of customers varying age groups, genders

and communities.

c) The competitors of Royal Enfield focus on the comfort, safety and durability of their

products, thus Royal Enfield should also try to improve itself in these areas.

d) In the international market, Royal Enfield should engage more customers through

heavy promotion and image-making, as they did in the Indian market.

e) Royal Enfield should invest more in R&D and come up with more variants of engines

for different price ranges and terrains

8.2 Limitations of the Study

a) The financial aspects of Royal Enfield may vary the conclusions of the study.

b) Market share of Royal Enfield in Indian and global market may differ from time-to-

time.

c) Value chain analysis in international market is difficult to allocate because some parts

are only produced in India and exported to foreign.

d) Consumer preference in competitive market vary from country to country and

customer to customer.

62
 e) Actual performance reviews of products are not fixed for all products because there

may be some factory defects that cannot be detected during test run, this can affect the

results.

8.3 Future prospects of the study

a) Vhju

b) Vyui

c) Biuo\

d) Nuio

e) bhuo

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